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How Iran plans to cover its budget deficit

As Iranian banks continue to struggle, the government has no choice but to develop the debt market in the coming years in order to make up for the damage incurred by the sanctions.
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TEHRAN, Iran — Research shows that countries where businesses can easily raise funds in the bond market typically experience comparatively faster and stronger recoveries from a recession. This finding is important for a nascent market at its embryonic stage, such as Iran. Indeed, with hopes for economic growth, Iran is now developing its Islamic bond market.

Iran Fara Bourse (IFB) is an over-the-counter (OTC) market, meaning trading is done directly between two parties. It is home to a plethora of modern financial instruments, all of which are Sharia-compliant. These include instruments such as Murabaha, Musharakah, Ijarah, different types of Sukuk with various maturities and also Islamic Treasury Bills (short-term sovereign debt). The Sharia-compliant Islamic T-bills are the latest addition, having made their debut on Sept. 30.  

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